Operator and farmland returns
Equal corn-soybean rotation, bottom-line profits across different land-productivity classes, commodity prices and years:
Depending upon your land productivity, $4 or $4.50 corn rotated with $11 or $11.10 soybeans will produce a $154/acre to $328/acre profit (or return to operator and land) in 2014. The far-right column shows a $4.50 corn and $11.10 bean scenario. The second from the right column shows a $4 corn and $11 bean scenario. The profit drop from earlier years will have to be offset by lower machinery purchases and lower cash rents, Schnitkey says. “We have not seen falling cash rents since the 1980s,” he adds.